Spatial Monopoly and Spatial Monopolistic Competition with Two-Part Pricing
AbstractThis paper develops a model of spatial price discrimination by two-part pricing when bearing freight and nonlinear pricing are impossible. The two-part tariff comprises a membership fee and a price per visit. When fixed costs per store are low, a monopolist makes membership compulsory and builds stores too close together. With higher fixed cost, the monopolist offers consumers a choice between membership and nonmembership, and builds stores too far apart. Nearby consumers become members, more distant consumers nonmembers. Competition leads to closer spacing than monopoly, and lower welfare except at high levels of fixed cost per store. Copyright 1988 by The London School of Economics and Political Science.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by London School of Economics and Political Science in its journal Economica.
Volume (Year): 55 (1988)
Issue (Month): 220 (November)
Contact details of provider:
Postal: Houghton Street, London WC2A 2AE
Phone: +44 (020) 7405 7686
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0013-0427
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- X. Wang & Bill Yang, 2010. "The sunk-cost effect and optimal two-part pricing," Journal of Economics, Springer, vol. 101(2), pages 133-148, October.
- HAMILTON , Jonathan & THISSE , Jacques-François, 1996.
"Nonlinear pricing in spatial oligopoly,"
CORE Discussion Papers
1996066, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Lindsey, Robin & Wang, Judith & Yang, Hai, 2010.
"Nonlinear Pricing on Private Roads with Congestion and Toll Collection Costs,"
2010-3, University of Alberta, Department of Economics.
- Wang, Judith Y.T. & Lindsey, Robin & Yang, Hai, 2011. "Nonlinear pricing on private roads with congestion and toll collection costs," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 9-40, January.
- Mark Burkey, 2011. "Spatial pricing models with lumpy transportation costs: the case for travel cost subsidization," Letters in Spatial and Resource Sciences, Springer, vol. 4(3), pages 197-206, October.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.